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Form #: B-52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: Environmental Management DATE: Feb. 13, 2017 STAFF CONTACT: William Kucharski PHONE: 961-8083 A. REQUEST: Resolution authorizing the payment of funds of a later fiscal year and of a multi-fiscal year agreement for greenwaste diversion operations in East Hawai'i and West Hawai'i. B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): The current contract for an organic waste diversion program in East Hawaii and West Hawai'i is a ten-year contract in effect from July 1, 2016 to June 30, 2026. The annual cost for this contract is between $2.9 million and $4.5 million dollars per year. The County plans to terminate the current contract for convenience with an effective date of June 30, 2017. Until that date, the current contractor will continue mulching and enhanced mulching. The Department of Environmental Management intends to issue a new procurement to replace the current organic waste diversion contract, as the County desires to increase waste diversion and reuse/recycling. The anticipated date of the new contract is July 1, 2017. Through research of the industry, it has been determined that a multi-year contract is necessary due to the expected start-up and equipment costs. To enable a return on investment, a three (3) year initial contract will provide the opportunity to increase waste diversion, reuse and recycling, as well as cost-effective greenwaste diversion. We respectfully request that this resolution be waived from the Council's Finance Committee and be placed on the March 8th, 2017 Council agenda in order to expedite the procurement of the new contract. SIGNED: i � DATE: Z" �'�- Department Head